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ADVANCE PROCESS SUPPLY v. LITTON INDUSTRIES CREDIT

No. 83-2292.

745 F.2d 1076 (1984)

ADVANCE PROCESS SUPPLY COMPANY, an Illinois corporation, Plaintiff-Appellant, v. LITTON INDUSTRIES CREDIT CORPORATION, a Delaware corporation, Defendant-Appellee.

United States Court of Appeals, Seventh Circuit.

Decided September 27, 1984.

Attorney(s) appearing for the Case

Donald F. Spak, Arvey, Hodes, Costello & Burman, Chicago, Ill., for plaintiff-appellant.

Keith A. Klopfenstein, Burke, Bosselman, Freivogel, Weaver, Glaves & Ryan, Chicago, Ill., for defendant-appellee.

Before BAUER and WOOD, Circuit Judges, and WEIGEL, Senior District Judge.

HARLINGTON WOOD, Jr., Circuit Judge.

In this dispute between a seller/guarantor and a creditor, we must decide who shall bear the burden of an improper filing that failed to secure an interest in the collateral, the equipment sold. We hold that although the creditor was responsible for the faulty filing, the seller/guarantor remained liable under the with-recourse agreement due to its warranty of proper filing.

I.

Advance Process Supply Company is...

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